HOUSE FILE _____

BY  (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON SANDS)

A BILL FOR

An Act providing a sales tax exemption for mowing implements used in farming operations.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

   Section 1.  Section 423.3, Code 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  96.  The sales price, exclusive of services related to the purchase, of mowing implements used in farming operations if such implements are not self-propelled.
EXPLANATION
   This bill provides a sales tax exemption for mowing implements used in farming operations if such implements are not self-propelled.
   By operation of Code section 423.6, an item exempt from the imposition of the sales tax is also exempt from the use tax imposed in Code section 423.5.